Legislature(2001 - 2002)

2002-06-24 House Journal

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2002-06-24                     House Journal                      Page 4021
HB 404                                                                                            
The following was engrossed and enrolled, signed by the Speaker and                                 
Chief Clerk, President and Secretary of the Senate, and the engrossed                               
and enrolled copies were transmitted to the Office of the Governor at                               
1:29 p.m., June 24, 2002:                                                                           
                                                                                                    
     CONFERENCE CS FOR HOUSE BILL NO. 404                                                           
     "An Act making appropriations for the operating and capital                                    
     expenses of the state's integrated comprehensive mental health                                 
     program; and providing for an effective date."                                                 
                                                                                                    
The following letter, dated June 24, 2002, from Senator Donley,                                     
Conference Committee Chair, Representative Mulder, Vice Chair, to                                   
Ms. Caren Robinson, Chair, Alaska Mental Health Trust Authority                                     
was also transmitted to the Office of the Governor:                                                 
                                                                                                    
"Dear Ms. Robinson:                                                                                 
                                                                                                    
In accordance with AS 37.14.005(c), this letter explains the changes                                
made to the Governor's Amended comprehensive FY 03 mental health                                    
and developmental disabilities services budget proposal as approved                                 
by the Legislature in CCS HB 404.                                                                   
                                                                                                    

2002-06-24                     House Journal                      Page 4022
We appreciate the good working relationship that has been established                               
between the Trust and the Legislature. It enabled us to address many                                
issues in creative and efficient ways that would not otherwise be                                   
possible.                                                                                           
                                                                                                    
As you are aware, the total state FY 03 general fund budget was                                     
reduced relative to FY 02.  The legislature's FY 03 general                                         
fund/mental health appropriation of $130,399,900 is approximately $3                                
million less than FY 02.  However, $3.6 million in general                                          
fund/mental health funds were replaced with new alcohol tax revenues                                
and $586,000 was reappropriated to Pioneer Homes, thus the total                                    
funding for these programs is above the FY 02 level while the total                                 
state general fund budget was reduced.  MHTAAR funds appropriated                                   
for operations and capital were less than the FY 02 level as available                              
investment income earnings were reduced. The total comprehensive                                    
program as approved by the legislature is $140,624,600 (plus the $3.6                               
million new alcohol tax revenue and $586,000 reappropriation to the                                 
Pioneer's Homes).                                                                                   
                                                                                                    
Program Changes - Operating                                                                         
                                                                                                    
                                                                                                    
Department of Administration                                                                      
Longevity Programs Management                                                                       
The FY 03 GF/Mental Health appropriation to Pioneers Homes was                                      
reduced by $234,100 from the Governor's amended budget request.                                     
$586,000 was reappropriated from the FY 02 Longevity Bonus                                          
appropriation to Pioneer Homes which more than offsets the                                          
GF/Mental Health reduction.                                                                         
                                                                                                    
Senior Services                                                                                     
The FY 03 GF/Mental Health appropriation to Senior Services was                                     
reduced by $3,600 from the Governor's amended budget request.                                       
                                                                                                    
                                                                                                    
Legal and Advocacy Services                                                                         
The FY 03 GF/Mental Health appropriation to Legal and Advocacy                                      
Services was reduced by $23,600 from the Governor's amended                                         
budget request.                                                                                     
                                                                                                    

2002-06-24                     House Journal                      Page 4023
Department of Corrections                                                                         
The GF/Mental Health funding for the Department of Corrections is                                   
unchanged from the Governor's amended budget request.                                               
                                                                                                    
Department of Education and Early Development                                                     
The GF/Mental Health funding in the Department of Education and                                     
Early Development was reduced by $700 from the Governor's                                           
amended budget request as part of an agency-wide unallocated budget                                 
reduction.                                                                                          
                                                                                                    
Department of Health and Social Services                                                          
Commissioner's Office                                                                               
The GF/Mental Health funding for the Commissioner's Office is                                       
reduced by $8,200 from the Governor's amended budget request.                                       
                                                                                                    
Purchased Services, Residential Child Care                                                          
The GF/Mental Health funding for Residential Child Care is reduced                                  
by $50,000 from the Governor's amended budget request.  Funding for                                 
Residential Child Care is largely refinanced through Medicaid in the                                
FY 03 budget.                                                                                       
                                                                                                    
State Health Services                                                                               
The GF/Mental Health funding for the Maternal, Child and Family                                     
Health is reduced by $4,000 from the Governor's amended budget                                      
request.  The GF/Mental Health funding for Community Health Grants                                  
is increased by $98,300 from the Governor's amended budget request.                                 
The GF/Mental Health funding for the Infant Learning program is                                     
reduced by $550,000 from the Governor's amended budget request, the                                 
Department of Health and Social Services indicated in budget impact                                 
statements that if the Infant Learning Program was changed to a needs                               
based program that savings up to $1 million could be achieved.  This                                
reduction was made with the direction that the program be operated as                               
a needs based program.                                                                              
                                                                                                    
Alcohol and Drug Abuse Grants                                                                       
A total reduction of $4,864,100 in GF/Mental Health funding was                                     
taken by the Legislature relative to the Governor's amended budget                                  
request in this component.   The Legislature replaced $3.6 million of                               
this GF/Mental Health funding with new alcohol tax revenues.                                        
                                                                                                    

2002-06-24                     House Journal                      Page 4024
Community Mental Health Grants                                                                      
Psychiatric Emergency Services GF/Mental Health Funding was                                         
reduced by $195,800, Services to the Chronically Mentally Ill by                                    
$369,700, Designated Evaluation and Treatment by $34,400 and                                        
Services to Seriously Emotionally Disturbed Youth by $186,600                                       
relative to the Governor's amended budget request.  These reductions                                
reflect increased use of Medicaid and direct federal grants to providers                            
for the provision of these services.                                                                
                                                                                                    
Institutions and Administration                                                                     
The Legislature denied an increment of $425,600 to the Mental                                       
Health/Developmental Disabilities Administration.  The Legislature                                  
approved an increment of $1,843,600 GF/Mental Health to the Alaska                                  
Psychiatric Institute to replace lost federal funding this was $7,300                               
less than requested by the Governor.                                                                
                                                                                                    
Mental Health Trust Boards                                                                          
The Legislature funded the Mental Health Trust Boards at the level                                  
2.3% ($34,300) below that requested by the Governor. We believe the                                 
board should use MHTAAR funds for its activities as those funds                                     
become available.                                                                                   
                                                                                                    
                                                                                                    
Program Changes - Capital                                                                           
                                                                                                    
Alaska Psychiatric Institute Stop - Gap Repairs                                                     
The stop gap repairs for API were reduced in consultation with the                                  
Trust as a result of the passage of HB 76 in 2001 which will replace                                
the current facility.                                                                               
                                                                                                    
Deferred Maintenance of Rural Facilities for Substance Abuse or                                     
Substance Abuse/Mental Health Programs                                                              
The GF/Mental Health appropriation was reduced from $400,000 to                                     
$200,000.                                                                                           
                                                                                                    
Rural Facility Renovation and Deferred Maintenance                                                  
The GF/Mental Health appropriation was reduced from $400,000 to                                     
$200,000.                                                                                           
                                                                                                    
                                                                                                    

2002-06-24                     House Journal                      Page 4025
Department of Health and Social Services                                                          
As was done for FY 02, the grants for public health services, alcohol                               
and drug abuse services, developmental disability services, mental                                  
health services, and community health were moved to a single                                        
appropriation rather than designated grants in separate appropriations.                             
The legislature believes that this will allow better management of the                              
grants and open the opportunity for innovative proposals. The amount                                
of grant funding available for these services remains at the level                                  
requested by the governor.                                                                          
                                                                                                    
Enclosed is a copy of component summaries provided by the                                           
Legislative Finance Division identifying each of the referenced                                     
adjustments by agency, budget request unit and component.                                           
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Senator David Donley                                               
                                 Conference Committee Chair                                         
                                                                                                    
                                 /s/                                                                
                                 Representative Eldon Mulder                                        
                                 Conference Committee Vice-Chair                                    
                                                                                                    
Enclosures"